ACH Payments
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Bob authorizes his mortgage lender to make automatic ACH payments from his bank account. This starts an information flow as Bob's bank checks for sufficient funds and debits his account if funds are available, sending the payment details to the ACH operator. The ACH operator then debits the receiving bank and credits the mortgage lender's account, completing the multi-step process. While simple for users, the ACH system involves many institutions and can be inefficient, and international payments are even more complex. CoinPip aims to simplify international payments with their service.
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ACH Payments
- 1. ACH Payments Are they efficient? by: John Scianna International Transfers Done Right!
- 2. Sending a check or an ACH payment is this easy... for the user.
- 3. However, the process may not be so easy.
- 4. Bob sending a check to his Mortgage Lender or authorization to use ACH payments is only the first step. Bob Mortgage Lender
- 5. Next is where the process can get confusing. Considering the information flows two ways.
- 6. The first information flow starts with Bob authorizing the ACH Payment.
- 7. Bob authorizes ACH payments Step 1 Step 2 Step 5 Mortgage Lender ML’s Bank Bob Bob’s BankACH Operator Step 3 Step 4 Payment Details Bank checks for sufficient funds ACH Entry ACH Entry
- 8. If Bob’s account has sufficient funds, his bank will debit his account, starting the information to flow the other way.
- 9. ML updates Bob’s account Step 10 Step 9 Step 6 Mortgage Lender ML’s Bank Bob Bob’s BankACH Operator Step 8 Step 7 Account credit Bob’s account is debited Bank debits ACH operator ACH operator debits bank
- 10. The whole process ends up looking like this.
- 11. ML updates Bob’s account Mortgage Lender ML’s Bank Bob Bob’s BankACH Operator Account credit Bob’s account is debited Bank debits ACH operator ACH operator debits bank Bob authorizes ACH payments Bank checks for sufficient funds Payment Details ACH EntryACH Entry
- 12. Sometimes the mortgage lender can be your bank reducing the number of parties involved.
- 13. Given the number of different institutions taking part in one transaction, the banking system can be quite inefficient.
- 14. Considering ACH payments are only used for domestic transactions, imagine the complexity of international payments.
- 15. Don’t worry, we make that simple.
- 16. Use CoinPip now for international payments and get your first five transactions free*.
- 17. International Transfers Done Right! angel.co/coinpip founders@coinpip.com angel.co/coinpip | founders@coinpip.com